Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 1.51
COST's Cash to Debt is ranked higher than
85% of the 558 Companies
in the Global Discount Stores industry.

( Industry Median: 0.49 vs. COST: 1.51 )
COST' s 10-Year Cash to Debt Range
Min: 0.01   Max: 5.83
Current: 1.51

0.01
5.83
Equity to Asset 0.36
COST's Equity to Asset is ranked higher than
67% of the 558 Companies
in the Global Discount Stores industry.

( Industry Median: 0.42 vs. COST: 0.36 )
COST' s 10-Year Equity to Asset Range
Min: 0.32   Max: 0.54
Current: 0.36

0.32
0.54
Interest Coverage 28.50
COST's Interest Coverage is ranked higher than
77% of the 427 Companies
in the Global Discount Stores industry.

( Industry Median: 13.31 vs. COST: 28.50 )
COST' s 10-Year Interest Coverage Range
Min: 1.83   Max: 129.33
Current: 28.5

1.83
129.33
F-Score: 7
Z-Score: 5.73
M-Score: -2.67
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 2.90
COST's Operating margin (%) is ranked higher than
74% of the 561 Companies
in the Global Discount Stores industry.

( Industry Median: 3.50 vs. COST: 2.90 )
COST' s 10-Year Operating margin (%) Range
Min: 0.7   Max: 3.24
Current: 2.9

0.7
3.24
Net-margin (%) 1.86
COST's Net-margin (%) is ranked higher than
74% of the 561 Companies
in the Global Discount Stores industry.

( Industry Median: 2.26 vs. COST: 1.86 )
COST' s 10-Year Net-margin (%) Range
Min: 0.75   Max: 2.01
Current: 1.86

0.75
2.01
ROE (%) 17.98
COST's ROE (%) is ranked higher than
90% of the 551 Companies
in the Global Discount Stores industry.

( Industry Median: 10.22 vs. COST: 17.98 )
COST' s 10-Year ROE (%) Range
Min: 11.3   Max: 17.79
Current: 17.98

11.3
17.79
ROA (%) 6.48
COST's ROA (%) is ranked higher than
87% of the 563 Companies
in the Global Discount Stores industry.

( Industry Median: 4.09 vs. COST: 6.48 )
COST' s 10-Year ROA (%) Range
Min: 5.09   Max: 7.84
Current: 6.48

5.09
7.84
ROC (Joel Greenblatt) (%) 22.81
COST's ROC (Joel Greenblatt) (%) is ranked higher than
83% of the 562 Companies
in the Global Discount Stores industry.

( Industry Median: 18.27 vs. COST: 22.81 )
COST' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 16.72   Max: 33.81
Current: 22.81

16.72
33.81
Revenue Growth (3Y)(%) 8.30
COST's Revenue Growth (3Y)(%) is ranked higher than
85% of the 494 Companies
in the Global Discount Stores industry.

( Industry Median: 5.70 vs. COST: 8.30 )
COST' s 10-Year Revenue Growth (3Y)(%) Range
Min: 4.8   Max: 14.9
Current: 8.3

4.8
14.9
EBITDA Growth (3Y)(%) 9.00
COST's EBITDA Growth (3Y)(%) is ranked higher than
69% of the 462 Companies
in the Global Discount Stores industry.

( Industry Median: 5.90 vs. COST: 9.00 )
COST' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 6   Max: 20
Current: 9

6
20
EPS Growth (3Y)(%) 12.10
COST's EPS Growth (3Y)(%) is ranked higher than
83% of the 424 Companies
in the Global Discount Stores industry.

( Industry Median: 7.20 vs. COST: 12.10 )
COST' s 10-Year EPS Growth (3Y)(%) Range
Min: 2.4   Max: 24.4
Current: 12.1

2.4
24.4
» COST's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

COST Guru Trades in Q4 2013

Paul Tudor Jones 8,894 sh (New)
Ken Fisher 1,772 sh (New)
Louis Moore Bacon 10,000 sh (New)
Jim Simons 2,857,513 sh (+90.28%)
Steven Cohen 68,228 sh (+34.72%)
RS Investment Management 44,878 sh (+20.79%)
Jeremy Grantham 1,736,761 sh (+11.23%)
Mario Gabelli 109,655 sh (+1.48%)
Ruane Cunniff 743,147 sh (+0.03%)
Warren Buffett 4,333,363 sh (unchged)
PRIMECAP Management 1,437,250 sh (unchged)
Ron Baron 14,396 sh (unchged)
Jeff Auxier 12,395 sh (unchged)
Tom Russo 5,855 sh (unchged)
Tom Gayner 39,300 sh (-1.01%)
Chris Davis 12,662,918 sh (-1.4%)
Bill Frels 1,969 sh (-9.22%)
» More
Q1 2014

COST Guru Trades in Q1 2014

Steven Cohen 93,221 sh (+36.63%)
Bill Frels 2,514 sh (+27.68%)
Tom Russo 6,855 sh (+17.08%)
Ron Baron 16,700 sh (+16%)
Jeremy Grantham 1,839,788 sh (+5.93%)
Jeff Auxier 12,396 sh (+0.01%)
Warren Buffett 4,333,363 sh (unchged)
Ken Fisher Sold Out
Louis Moore Bacon Sold Out
Ruane Cunniff 740,247 sh (-0.39%)
Tom Gayner 39,000 sh (-0.76%)
Mario Gabelli 108,555 sh (-1%)
RS Investment Management 42,178 sh (-6.02%)
Chris Davis 11,535,342 sh (-8.9%)
PRIMECAP Management 933,150 sh (-35.07%)
Jim Simons 1,247,800 sh (-56.33%)
Paul Tudor Jones 3,490 sh (-60.76%)
» More
Q2 2014

COST Guru Trades in Q2 2014

John Rogers 5,057 sh (New)
RS Investment Management 49,168 sh (+16.57%)
Jeremy Grantham 1,880,088 sh (+2.19%)
Jeff Auxier 12,397 sh (+0.01%)
Steven Cohen 221,900 sh (unchged)
Tom Gayner 39,000 sh (unchged)
Warren Buffett 4,333,363 sh (unchged)
Ruane Cunniff 740,020 sh (-0.03%)
Mario Gabelli 106,320 sh (-2.06%)
Ron Baron 15,973 sh (-4.35%)
Bill Frels 2,266 sh (-9.86%)
Chris Davis 10,049,555 sh (-12.88%)
Jim Simons 1,050,900 sh (-15.78%)
Tom Russo 5,655 sh (-17.51%)
Paul Tudor Jones 1,908 sh (-45.33%)
PRIMECAP Management 457,450 sh (-50.98%)
» More
Q3 2014

COST Guru Trades in Q3 2014

Signature Select Canadian Fund 72,300 sh (New)
Ken Fisher 1,602 sh (New)
Stanley Druckenmiller 158,100 sh (New)
Jim Simons 1,554,913 sh (+47.96%)
RS Investment Management 54,413 sh (+10.67%)
Jeremy Grantham 2,047,548 sh (+8.91%)
John Rogers 5,221 sh (+3.24%)
Tom Gayner 39,000 sh (unchged)
Jeff Auxier 12,397 sh (unchged)
Warren Buffett 4,333,363 sh (unchged)
Tom Russo 5,655 sh (unchged)
Ron Baron 15,973 sh (unchged)
Paul Tudor Jones Sold Out
Ruane Cunniff 739,699 sh (-0.04%)
Mario Gabelli 105,460 sh (-0.81%)
Bill Frels 2,191 sh (-3.31%)
PRIMECAP Management 357,450 sh (-21.86%)
Chris Davis 6,603,246 sh (-34.29%)
Steven Cohen 74,400 sh (-66.47%)
» More
» Details

Insider Trades

Latest Guru Trades with COST

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Chris Davis 2014-09-30 Reduce -34.29%1.17%$115.75 - $127.62 $ 141.7717%6603246
PRIMECAP Management 2014-09-30 Reduce -21.86%0.01%$115.75 - $127.62 $ 141.7717%357450
Ken Fisher 2014-09-30 New Buy$115.75 - $127.62 $ 141.7717%1602
Chris Davis 2014-06-30 Reduce -12.88%0.45%$110.65 - $118.23 $ 141.7724%10049555
PRIMECAP Management 2014-06-30 Reduce -50.98%0.06%$110.65 - $118.23 $ 141.7724%457450
John Rogers 2014-06-30 New Buy0.01%$110.65 - $118.23 $ 141.7724%5057
Chris Davis 2014-03-31 Reduce -8.9%0.33%$110.18 - $119.02 $ 141.7724%11535342
PRIMECAP Management 2014-03-31 Reduce -35.07%0.07%$110.18 - $119.02 $ 141.7724%933150
Ken Fisher 2014-03-31 Sold Out $110.18 - $119.02 $ 141.7724%0
Ken Fisher 2013-12-31 New Buy$112.21 - $125.43 $ 141.7718%1772
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Top Ranked Articles about Costco Wholesale Corp

Davis Selected Advisers Chris Davis' Top Five Holdings for the First Quarter
Over the past quarter Chris Davis of Davis Selected Advisers reported a total portfolio of 184 stocks valued at $36.324 billion. The guru purchased 11 new stocks over the quarter.

Read more...
Costco’s Predictability Justifies Its Higher P/E
The stock market has had quite a run in the past five years, and there has been an increase in volatility lately. Given these concerns, I ran a screen for highly predictable, defensive stocks in the retail industry using the screener at GuruFocus. There were only a few results and Costco Wholesale Corporation (COST) was at the top of the list. At first glance, Costco looks expensive given its P/E of 25.80. I think that its high predictability and low volatility decreases the cost of equity for Costco and justifies its high P/E ratio. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 29.40
COST's P/E(ttm) is ranked higher than
70% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 22.50 vs. COST: 29.40 )
COST' s 10-Year P/E(ttm) Range
Min: 14.35   Max: 29.74
Current: 29.4

14.35
29.74
P/B 5.02
COST's P/B is ranked higher than
58% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 2.32 vs. COST: 5.02 )
COST' s 10-Year P/B Range
Min: 1.86   Max: 5.07
Current: 5.02

1.86
5.07
P/S 0.55
COST's P/S is ranked higher than
71% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 0.53 vs. COST: 0.55 )
COST' s 10-Year P/S Range
Min: 0.24   Max: 0.55
Current: 0.55

0.24
0.55
PFCF 28.53
COST's PFCF is ranked higher than
74% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 37.57 vs. COST: 28.53 )
COST' s 10-Year PFCF Range
Min: 12.13   Max: 114.1
Current: 28.53

12.13
114.1
EV-to-EBIT 18.03
COST's EV-to-EBIT is ranked higher than
73% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 17.07 vs. COST: 18.03 )
COST' s 10-Year EV-to-EBIT Range
Min: 8.6   Max: 18.8
Current: 18.03

8.6
18.8
PEG 2.83
COST's PEG is ranked higher than
81% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 30.00 vs. COST: 2.83 )
COST' s 10-Year PEG Range
Min: 1.24   Max: 3.14
Current: 2.83

1.24
3.14
Shiller P/E 36.71
COST's Shiller P/E is ranked higher than
79% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 31.75 vs. COST: 36.71 )
COST' s 10-Year Shiller P/E Range
Min: 16.31   Max: 37.11
Current: 36.71

16.31
37.11
Current Ratio 1.20
COST's Current Ratio is ranked higher than
75% of the 561 Companies
in the Global Discount Stores industry.

( Industry Median: 1.13 vs. COST: 1.20 )
COST' s 10-Year Current Ratio Range
Min: 0.91   Max: 1.25
Current: 1.2

0.91
1.25
Quick Ratio 0.59
COST's Quick Ratio is ranked higher than
69% of the 561 Companies
in the Global Discount Stores industry.

( Industry Median: 0.63 vs. COST: 0.59 )
COST' s 10-Year Quick Ratio Range
Min: 0.13   Max: 0.66
Current: 0.59

0.13
0.66

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.00
COST's Dividend Yield is ranked lower than
75% of the 473 Companies
in the Global Discount Stores industry.

( Industry Median: 1.80 vs. COST: 1.00 )
COST' s 10-Year Dividend Yield Range
Min: 0.24   Max: 1.64
Current: 1

0.24
1.64
Dividend Payout 0.29
COST's Dividend Payout is ranked higher than
81% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 0.61 vs. COST: 0.29 )
COST' s 10-Year Dividend Payout Range
Min: 0.16   Max: 0.38
Current: 0.29

0.16
0.38
Dividend growth (3y) 14.30
COST's Dividend growth (3y) is ranked higher than
89% of the 389 Companies
in the Global Discount Stores industry.

( Industry Median: 4.60 vs. COST: 14.30 )
COST' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 40.1
Current: 14.3

0
40.1
Yield on cost (5-Year) 1.98
COST's Yield on cost (5-Year) is ranked higher than
50% of the 478 Companies
in the Global Discount Stores industry.

( Industry Median: 2.02 vs. COST: 1.98 )
COST' s 10-Year Yield on cost (5-Year) Range
Min: 0.47   Max: 3.24
Current: 1.98

0.47
3.24

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 5.02
COST's Price/Tangible Book is ranked higher than
67% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 4.16 vs. COST: 5.02 )
COST' s 10-Year Price/Tangible Book Range
Min: 1.75   Max: 5.8
Current: 5.02

1.75
5.8
Price/DCF (Projected) 1.86
COST's Price/DCF (Projected) is ranked higher than
81% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 2.57 vs. COST: 1.86 )
COST' s 10-Year Price/DCF (Projected) Range
Min: 1.02   Max: 7.95
Current: 1.86

1.02
7.95
Price/Median PS Value 1.31
COST's Price/Median PS Value is ranked higher than
69% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 1.10 vs. COST: 1.31 )
COST' s 10-Year Price/Median PS Value Range
Min: 0.43   Max: 1.92
Current: 1.31

0.43
1.92
Price/Peter Lynch Fair Value 2.73
COST's Price/Peter Lynch Fair Value is ranked higher than
85% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 9999.00 vs. COST: 2.73 )
COST' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.35   Max: 3.03
Current: 2.73

1.35
3.03
Price/Graham Number 2.53
COST's Price/Graham Number is ranked higher than
72% of the 589 Companies
in the Global Discount Stores industry.

( Industry Median: 2.46 vs. COST: 2.53 )
COST' s 10-Year Price/Graham Number Range
Min: 1.17   Max: 3.12
Current: 2.53

1.17
3.12
Earnings Yield (Greenblatt) 5.50
COST's Earnings Yield (Greenblatt) is ranked higher than
72% of the 557 Companies
in the Global Discount Stores industry.

( Industry Median: 6.10 vs. COST: 5.50 )
COST' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.3   Max: 11.6
Current: 5.5

5.3
11.6
Forward Rate of Return (Yacktman) 13.54
COST's Forward Rate of Return (Yacktman) is ranked higher than
81% of the 437 Companies
in the Global Discount Stores industry.

( Industry Median: 10.45 vs. COST: 13.54 )
COST' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 9.7   Max: 15.5
Current: 13.54

9.7
15.5

Analyst Estimate

Aug15 Aug16 Aug17
Revenue(Mil) 120,833 131,650 142,700
EPS($) 5.17 5.66 6.31
EPS without NRI($) 5.17 5.66 6.31

Business Description

Industry: Retail - Defensive » Discount Stores
Compare:WMT, WMMVY, DG, FDO, DLTR » details
Traded in other countries:CTO.Germany, COST.Mexico, COST.Chile,
Costco Wholesale Corp was incorporated in Washington and started operations in 1983. The Company and its subsidiaries operate membership warehouses. It offers its members low prices on a limited selection of nationally branded and select private-label products in merchandise categories. At the year end, the Company operated 663 warehouses worldwide: 468 United States (U.S.) locations (in 43 U.S. states, Washington, D.C., and Puerto Rico), 88 Canadian locations, 33 Mexico locations, 26 United Kingdom (U.K.) locations, 20 Japan locations, 11 Korea locations, 10 Taiwan locations, six Australia locations, and one Spain location. The Company's online business operates websites in the U.S., Canada, U.K., and Mexico. The category of items sold includes Food including dry and institutionally packaged foods, Sundries including snack foods, candy, tobacco, alcoholic and nonalcoholic beverages, and cleaning and institutional supplies, Hardlines including major appliances, electronics, health and beauty aids, hardware, garden and patio, and office supplies, Fresh Food including meat, produce, deli, and bakery, Softlines including apparel, small appliances, and home furnishings, and Ancillary and Other including gas stations, pharmacy, food court, and optical. Ancillary businesses within or next to our warehouses provide expanded products and services and encourage members to shop more frequently. The ancillary businesses in operation include Food Courts, Photo Processing Centers, Optical Dispensing Centers, Pharmacies, Hearing-Aid Centers, Gas Stations and warehouses. Its trademarks include Costco Wholesale and its private label brand, Kirkland Signature. Marketing activities generally include community outreach programs to local businesses in new and existing markets and direct mail to prospective new members. Ongoing promotional programs primarily relate to coupon mailers, The Costco Connection (a magazine we publish for our members), and e-mails to members promoting selected merchandise. It competes with warehouse club operations across the U.S. and Mexico primarily Wal-Mart's Sam's Club and BJ's Wholesale Club. In addition, it competes on a worldwide basis with global, national and regional wholesalers and retailers, including supermarkets, supercenters, department and specialty stores, gasoline stations, and internet retailers. Competitors such as Wal-Mart, Target, Kohl's and Amazon.com are among its significant general merchandise retail competitors. It also competes with operators selling a single category or narrow range of merchandise, such as Lowe's, Home Depot, Office Depot, PetSmart, Staples, Kroger, Trader Joe's, Whole Foods, CVS, Walgreens, and Best Buy.
» More Articles for COST

Headlines

Articles On GuruFocus.com
These Retailers Look Like Good Long-Term Investments Dec 19 2014 
Druckenmiller Adds Healthcare Stocks to Portfolio Dec 15 2014 
Costco Wholesale Corporation Reports First Quarter Fiscal Year 2015 Operating Results Dec 10 2014 
Walmart: Dividend Aristocrats In Focus Part 54 Dec 05 2014 
Costco Wholesale Corporation Reports November Sales Results Dec 04 2014 
Costco Eying Higher Revenue Nov 28 2014 
Costco Outpaces Target and Walmart in Profit Growth Nov 28 2014 
Walmart Still Rules The Retail Roost Nov 21 2014 
Costco Wholesale Corporation Reports October Sales Results Nov 06 2014 
Why Is Costco My Ideal Pick In The Retail Sector? Nov 05 2014 


More From Other Websites
'Mad Money' Lightning Round: You Have a Winner With Lithia Motors Dec 20 2014
Cramer: Buy this stock for your kids Dec 19 2014
Holiday scammers taking aim via text, e-mail, cellphone Dec 19 2014
COSTCO WHOLESALE CORP /NEW Files SEC form 10-Q, Quarterly Report Dec 18 2014
Cooperman: Good things come from ease on Cuba Dec 17 2014
Headwinds And Tailwinds For Lululemon Revenues This Year Dec 17 2014
Analysts Not-So-Bullish On Costco Dec 15 2014
Stock Pops & Drops: COST, IBM, AAPL & ONVO Dec 12 2014
A dip you shouldn't buy? Traders debate Dec 12 2014
6 ways to play the sell-off Dec 12 2014
The rout was on, as major averages post worst weekly loss since 2012 Dec 12 2014
Street Talk: Interesting Costco call Dec 12 2014
4 Stocks, 4 trades: ADBE, HOG, COST & SEAS Dec 12 2014
Boxed App: The Bulk Retailer in Your Mobile Phone Dec 12 2014
Costco (COST) Stock Declines Today After Analyst Downgrade Dec 12 2014
Fast Money Final Trade: COST, NXPI, RNF & SAVE Dec 11 2014
Costco Stock Is a Deal, Says JPMorgan Dec 11 2014
Hiring, Cheaper Fuel Give U.S. Retailers Holiday Boost: Economy Dec 11 2014
Deutsche Bank: Costco's Q1 Print 'Below Buy-Side Expectations' Dec 11 2014
UBS On Costco: 'Filling Up The Margin,' Hikes Price Target Following Q1 Print Dec 11 2014

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK